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Thread: Portions of the film explained - (deli man)

Rita and Betty are soul wanderers

Camilla is DEAD! She died in the car accident at the beginning of the film. She was supposed to get knocked off by the hitman driving the limo, but instead she was killed in the accident ("fucking car accident!" "who could have foreseen that, man?"). If she wasn't dead then she would not have been able to communicate with Diane.
See, the "dream" sequences of the movie were not exactly dreams, they were real, to some extent. Let me explain: there is a myth that when you die of un-natural causes, your soul wanders about this plane of existence for some time before you realized what has happened. You become confused, per se (being a very spiritual person, chances are Lynch has heard and maybe believes this myth). This is the case with Diane and Camilla. The whole film, they try and figure out who "Rita" really is. When they finally find out the truth ("it is just a recording, it's all a tape"), they cry because they realize they are both dead. 
A blue box appears out of nowhere in "Betty's" purse. The blue box is the truth, the exit. When they open the blue box, they successfully exit this plane of existence because they realize the truth. Aunt Ruth enters the room (Ruth is also dead) and finds that they are gone. Sequentially, this is where the movie ends. Everything that occurs after this part in the film are the events that led up to the death of Diane. - (deli man)

Camilla is murdered, but she doesn't know why. Before she can leave our earthly realm, she needs to find the truth for herself. In other words, she's finding closure. That closure comes as she and Betty go to that theatre, Betty presents that blue box, which Camilla has the key to. At this point, the look on Camilla's face seems to be that of understanding. When she returns to the apartment, she's prepared to release herself... and turns the key. In life, Camilla was egocentric and she didn't consider how much in love Betty was with her. That was something she had to learn. - (skinky_1999)

A place in-between the real world and hell/heaven

I think that what this movie/Lynch is trying to tell us is that God is something like a movie director, casting auditions after a person dies. Depending on the outcome, i.e. if the actor gets the part or not, this person is sent to hell or heaven or even gets another chance in life, the chance to play another part in a movie. In this place, you don't have any recollection of your past, you are given a clean start.
The order of the events is mixed up but note that Diane pays someone to kill Camilla and then commits suicide, so both girls are dead. Camilla dies first so she goes through this "audition" first and apparently doesn't get the part (remember that when Betty auditions, the man there mentions something about a brunette woman that also auditioned), so she is not given another chance, unfortunately.
Now recall that in the beginning of the movie, a person is trying to lead Camilla somewhere that she doesn't want to go but then an accident happens. So instead of being put away since she fails, she is now on the loose. Diane now is also there, since she committed suicide out of guilt, not long after Camilla was killed. The two women now meet in this place which is something like in-between the real world and hell/heaven, something that shouldn't have happened. Now recall that there was a strange woman living there, kinda spiritual, that freaked out when she saw Camilla and told that "she shouldn't be there". 
None of the two women have any recollection of their past life, but at the end, inside the "Silencio" club, they remember everything, this is what the opening of the weird blue box symbolizes. Both women have failed, Diane wakes up by a freaky cowboy in cheap motel, a symbolism for hell. - (kleo)